National Hardwood Magazine - September 2023

EXPERIENCE QUALITY

EXPERIENCE QUALITY DEPENDABILITY 975 Conrad Hill Mine Rd. ~ Lexington, NC 27292 Phone 336-746-5419 ~ Fax 336-746-6177 www.kepleyfrank.us Facilities: 3 Sawmills Processing 50 Million' • 750,000' Dry Kiln Capacity • 600,000' Fan Shed Capacity 2 382 Newman Planer Mills • 50 Bay Bin Sorter Products Available: 4/4-8/4 Appalachian Lumber • 6/4-8/4 Ship Dry Capacity Crossties (100,000 BF per week) • Timbers up to 18' 1,000,000+ Average KD Inventory • 12,000,000+ Average AD Inventory Species: White Oak • Red Oak • Poplar • Ash • Hickory Elm • Beech • Gum • Hackberry • Pecan Jimmy Kepley, owner, and Bart Jenkins, lumber sales The firm manufactures 4/4 through 8/4 thicknesses. Sales: Bart Jenkins bjenkins@kepleyfrank.us Jimmy Kepley jkepley@kepleyfrank.us ONTARIO Continued though price growth deceleration was comparatively broad-based. Mortgage interest costs continued to accelerate in June and will add inflationary pressures over the coming months. Excluding mortgage interest costs, the consumer price index grew by 2.0 percent (y/y). But inflation remains elevated. Falling energy prices, base effects, and higher interest rates brought consumer price growth within the Bank’s target range, but not to its 2 percent target. Consumers’ near-term inflation expectations continued to fall in the second quarter of 2023, but remain far above pre-pandemic norms and the Bank’s target. The cost of food in stores rose again in June, year-over-year. Russia refused to renew a deal that has guaranteed the safety of grain, Ukraine grain exports, which could trigger an increase in global food prices. Wage growth has moderated, which will ease some inflationary pressure if the labor market maintains its slowdown. But some firms report that they aren’t finished raising prices in the wake of cost increases over the past three years. This will likely keep the scale and frequency of price changes elevated as the year unfolds. The Bank of Canada raised its interest rate in July, due to concerns about the current state of inflation. The persistence of core inflation was a key justification for this hike, the second since the Bank cancelled the pause to its rate hiking cycle in June. In June, the Bank’s two primary measures of core inflation (CPI-trim and CPI-median) averaged 3.8 percent. These measures averaged 4.5 percent between January and May 2023. While core measures are falling, they are decelerating more gradually than headline inflation. The direction of core inflation over the coming months will be a key factor for determining the direction of monetary policy—and the financial fate of Canadians—from here. In this brave new world of stickier inflation, expectations that rates will begin to fall in early 2024 may be premature. n Scan and sign-up to get all 13 digital issues of National Hardwood Magazine FREE and delivered directly to your inbox. QUEBEC Continued from page 10 industry in the U.S., it has impacted the regionally important Hard and Soft Maple. Contacts noted Hard Maple supplies are exceeding demand, even though sawmills are controlling production. Sales are harder to come by for Soft Maple, said contacts. Customers have the supplies they need, which include the case goods, moulding and millwork plants as well as the cabinet industry. Cherry seems to have lost its first-place ranking in many areas of the world, including the U.S. and Canada. China is the biggest buyer of Cherry, yet, their demand of Cherry contracted quite a bit in the past few months. Cherry prices steadily retreated during that time, but currently, price pressures appear to be easing. Hickory sales are seeing less activity, as flooring producers reduced buying, and demand from wholesalers and cabinet plants were sluggish. It was noted that interest in kiln-dried Hickory and for Common grades was also off. Demand for Red and White Oak from residential and truck trailer flooring manufacturers is doing well. Some companies have ample inventory, while few are comfortable with on hand supplies, given the low rate of sawmill production and the potential for further mill disruptions in the months ahead. Exporters said Chinese markets are a bit more active now than during the past two months. For many, most say depressed prices and concerns about possible shortages later in the year are driving activity rather than any increase in underlying demand. Chinese buyers were ordering large quantities of Red Oak, but pricing was intensely competitive in most cases. Domestic markets for kiln-dried Red Oak, while steady, are not absorbing enough volume to mitigate price pressures. There is solid momentum for White Oak markets. While White Oak is attracting decent interest in North America and overseas, much of the marketplace energy stems TELL US WHAT HARDWOOD YOU NEED AND WE’LL BRING IT TO THE TABLE. It’s essential to deliver a wide variety of the highestgrade hardwood to the entire architectural millwork, hardwood flooring, cabinetry, furniture, and dimension industries. Centrally located within the United States, our transportation network ensures quick and efficient delivery of fine Appalachian hardwood from wherever the call may arise. Extensive improvements in technology, coupled with a sharp eye for attention to detail and customer needs, has given us a reputation for quality and choice in the hardwood market. • Premier Global Provider • Wide Variety of Hardwood • Excellent Value • Superb Service • Ready to Deliver from low supply. Stave manufacturers are buying large volumes of White Oak logs, limiting the availability of high quality logs for sawmills, making prices firm to higher as a result. On domestic markets Poplar is a bestseller say sales contacts. The moulding/millwork sector is the strongest domestic market for Poplar. In contrast, Poplar exports are weak to Europe, Vietnam, and several other destinations. Lately, prices were under moderate pressure, and green and kiln-dried figures were lowered accordingly. MIDWEST hermitagehardwood.com | 931.526.6832 Please turn the page Fine Appalachian Hardwood Since 1979 60 SEPTEMBER 2023 n NATIONAL HARDWOOD MAGAZINE RealAmericanHardwood.com/industry RealAmericanHardwood.com/industry SEPTEMBER 2023 n NATIONAL HARDWOOD MAGAZINE 61